Berlinger, Edina and Khayouti, Sára and Kiss, Hubert János Time discounting predicts loan forbearance takeup. Project Report. KRTK KTI, Budapest.
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Abstract
During the COVID-19 pandemic, many countries eased the burden of borrowers through loan forbearance. Using a representative sample of the Hungarian adult population, we investigate if time discounting and locus of control predict who takes up loan forbearance. We find convincing evidence that time discouting associates with the resort to forbearance: individuals who discount the future less are less likely to take up forbearance, even if we take into account their educational level and financial status. Data suggest that the channel through which time discounting and loan forbearance are related is savings. There is no statistically significant relationship between locus of control and forbearance takeup.
| Item Type: | Monograph (Project Report) |
|---|---|
| Series Name: | KRTK-KTI Working Papers / KRTK-KTI Műhelytanulmányok |
| Series Number / Identification Number: | 2022/1 |
| Uncontrolled Keywords: | loan forbearance, locus of control, time discounting |
| JEL classification: | G41 - Behavioral Finance: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets G51 - Household Saving, Borrowing, Debt, and Wealth |
| Divisions: | Institute of Economics Institute of Finance |
| Subjects: | Finance |
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| ID Code: | 11461 |
| Deposited By: | Erzsó Nyitrai |
| Deposited On: | 25 Jun 2025 08:53 |
| Last Modified: | 25 Jun 2025 08:53 |
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